1-1 By: Ellis S.B. No. 1470
1-2 (In the Senate - Filed March 13, 1997; March 19, 1997, read
1-3 first time and referred to Committee on Finance; April 28, 1997,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 12, Nays 0; April 28, 1997, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1470 By: Truan
1-7 AN ACT
1-8 relating to a prepaid tuition plan for graduate studies.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 54.622, Education Code, is amended to
1-11 read as follows:
1-12 Sec. 54.622. TYPES OF PLANS. The board shall make prepaid
1-13 tuition contracts available for the:
1-14 (1) junior college plan;
1-15 (2) senior college plan;
1-16 (3) junior-senior college plan; [and]
1-17 (4) private college plan; and
1-18 (5) graduate tuition assistance plan.
1-19 SECTION 2. Subchapter F, Chapter 54, Education Code, is
1-20 amended by adding Section 54.6252 to read as follows:
1-21 Sec. 54.6252. GRADUATE TUITION ASSISTANCE PLAN. (a) The
1-22 board shall permit the purchaser of a plan other than a plan
1-23 authorized by this section to enter into a supplemental contract to
1-24 provide the beneficiary with a source of funds to apply toward the
1-25 payment of tuition for graduate studies.
1-26 (b) A contract for a graduate tuition assistance plan must
1-27 permit the purchaser to deposit an amount into the plan not to
1-28 exceed 25 percent of each amount paid by the purchaser under the
1-29 principal contract. The board shall maintain a separate account
1-30 for each contract.
1-31 (c) Section 54.620(b) and Sections 54.620(d)(5) through (8)
1-32 do not apply to a contract for a graduate tuition assistance plan.
1-33 (d) The board shall credit to each account established under
1-34 this section at least monthly the income earned by the fund
1-35 attributable to the amount in the account and shall deduct from the
1-36 current balance any amount paid out from the account. In
1-37 determining the income attributable to the amount in the account,
1-38 the board shall take into account the appropriate proportion of the
1-39 board's costs of program administration and operations attributable
1-40 to the account.
1-41 (e) The beneficiary of the plan may apply any portion of the
1-42 current balance in the account to pay tuition and required fees
1-43 when the beneficiary is enrolled in a postgraduate degree program
1-44 at any accredited public or private institution of higher education
1-45 in or outside of this state at which the beneficiary is enrolled.
1-46 The board shall pay to the institution the applicable amount of the
1-47 beneficiary's tuition and required fees.
1-48 SECTION 3. Subsection (b), Section 54.631, Education Code,
1-49 is amended to read as follows:
1-50 (b) A prepaid tuition contract for a plan other than a
1-51 graduate tuition assistance plan terminates on the 10th anniversary
1-52 of the date the beneficiary is projected to graduate from high
1-53 school, not counting time spent by the beneficiary as an active
1-54 duty member of the United States armed services. A prepaid tuition
1-55 contract for a graduate tuition assistance plan terminates on the
1-56 10th anniversary of the date the first payment of tuition or fees
1-57 from the account is made, not counting time spent by the
1-58 beneficiary as an active duty member of the United States armed
1-59 services.
1-60 SECTION 4. (a) This Act takes effect January 1, 1998.
1-61 (b) The Prepaid Higher Education Tuition Board shall begin
1-62 offering contracts for graduate tuition assistance plans not later
1-63 than the first prepaid tuition contract enrollment period after the
1-64 effective date of this Act.
2-1 SECTION 5. The importance of this legislation and the
2-2 crowded condition of the calendars in both houses create an
2-3 emergency and an imperative public necessity that the
2-4 constitutional rule requiring bills to be read on three several
2-5 days in each house be suspended, and this rule is hereby suspended.
2-6 * * * * *